September 2008

September 30, 2008

We're gearing up to showcase several of the latest AbsolutelyNew innovations on the TV shopping channels, and needless to say, we're quite excited. Did you know the largest of these networks reaches >140 million homes, and has shipped more than a billion packages? And the sales in this channel are growing!

Given this, I thought you might value some inside perspective on the world of TV shopping. So I reached out to our Director of TV Sales, Wendy Knecht. Wendy's been selling products to QVC, HSN, and the others for years, and has appeared as a “guest” on QVC more than 25 times. She's had her big successes, and her complete busts (like when major Iraqwar news had everyone switching off QVC to watch CNN). Here are some highlights from my conversation with Wendy:

The TV shopping channels continue to get bigger. More players (like ShopNBC and Shop Latino TV) are also getting in on the action. This growth translates to more opportunities to get innovative products on air. But the stakes are also a lot higher – products are getting shorter time segments (ie: 6 minutes each) and the dollar sales per minute expectations are getting higher.

Selling on TV can be very lucrative. It can also be very risky, because you must agree to a “guaranteed sale.” This essentially means that once you've received an order, you need to produce 100% of the inventory up front... but you will only receive payment for units that sell. Unsold inventory will be returned to you, at your expense. Thus it is very important to work with your buyer to determine a reasonable quantity for each order.

Seven keys for on-air success:

Start out by presenting a need or problem, and then quickly show how your product addresses it.

Be enthusiastic.

Be repetitive. Simplicity sells on TV, whereas too many different selling points often make a product seem complicated.

“Facts tell. Stories sell.” Always make it personal by talking about how you’ve used the product, how it’s made your mom’s life better, etc.

Let the host run the show because they truly know the audience best.

The camera follows your hands so use them wisely to showcase your invention.

Thin stripes and plaids blur on camera. Choose a wardrobe of solid colors that stand out.

Want to learn more? Or have any additional thoughts based on your own experiences?

September 25, 2008

Our head of licensing surprised me the other day. Based on many, MANY years brokering licensing agreements, he said "Of all the players in the invention game, the inventor takes on the lowest risk in bringing a product to market."

What???

Then we started to discuss this point, and it made a lot more sense. You see, he's talking financial risk. An inventor puts his or her heart & soul, and usually cash too, into an invention... but a manufacturer must often commit hundreds of thousands into tooling and the initial production run... and retailers take on very significant risk too when they take their first order – which can be substantial when you're talking a big retailer with stores all around the U.S. – and they also clear out other products to do so. So when it comes to absolute dollars committed, the inventor really does have the lowest risk.

Why do I mention this, especially when it ignores the very huge time and emotional investment that most inventors make? Simply to give a little more insight into how the other key players in the game are likely thinking (and fretting, no matter how big they are) as they speak with you about your invention.

September 22, 2008

We attend to a lot of tradeshows – often one or two a week, across a wide range of industries, in cities all around the U.S. We go to them because, even in this modern age of video conferencing and online business, tradeshows remain an excellent venue for connecting with key people and showcasing breakthrough products to the industry insiders who really matter.

Pretty straightforward... but we've also seen inventors trip themselves up at big shows. So here are several tradeshow attendance tips from our people who earn many a frequent flier mile hitting shows near & far:

Prepare ahead. Know who (or what companies) you want to meet before you get there... even if they don't know to expect you... and know what you want to tell them.

Be time sensitive. People usually attend shows to sell their product or to seek out products to buy. Knowing this, be mindful of their time. When you have an audience, keep it short & sweet.

Make a strong first impression. Make eye contact, give a firm handshake, and briefly explain why you're attending the show and seeking to speak with this individual or company. Then move quickly to determine if you're speaking with the right person or if you should follow-up with somebody else.

Follow-up. Don't count on others to get back to you. Plan concrete Next Steps, ideally scheduling further discussion at the show or at a specific later date.

Know when to walk away. Darting eyes and other obvious body language indicate a person isn't interested. In some cases, you may simply have caught them at a bad time. Note the signs, and trust your judgment. You may be better off stepping away and plotting a new approach.

What else have you learned from your tradeshows experiences, that could help other inventors like you? Tips and/or tragedies to share?

September 17, 2008

Listerine introduced its little PocketPaks breath strips in 2001. I thought it was such a cool innovation. So did TIME Magazine, which named PocketPaks one of the best inventions of 2002 (along with Bluetooth, Dyson vacuums, and some products that haven’t quite fared so well).

Interestingly, did you notice how fast others like Altoids introduced their own little mint strips? Then “strips” spread to medicines, like Theraflu Thin Strips. I was reminded of this the other day when one of my fave web magazines, uncrate.com, featured Dissolving Paper Shampoo, packaged 30 strips to a floss-sized container for portability, no leaking… and no issues with Airport Security.

So how did everyone so quickly go to strips like Listerine? Did they not patent their strips? It seems that they couldn’t go that protection route because the form had long been used as a confectionary technology in Asia. No joke – it was big in Japan. Thus what the smart folks at Listerine did was develop and patent their ingenious dispenser, so no other player could match the overall usage experience. This has helped them hold the #1 spot for almost seven years.

It all goes to show how important it is to patent your idea so others cannot easily copy it... and how a little patenting creativity can go a long way in keeping your product #1.

Related, one of my colleagues recently got back from the Health & Beauty America tradeshow in NYC. In addition to seeing a lot of hair coloring (we’re talking lots and lots and lots of hair coloring products), she said most of the industry innovation is in... dispensers. That’s right – folks in cosmetics, fragrance and personal care are keenly focused on how a product dispenses, and how this dispenser looks, to increase consumer value... not that you’d have to tell that to the PocketPaks people.

September 15, 2008

You know the drill – you’ve got a big meeting coming up, and you want to shine. Well, we’ve got another one of those approaching, this time with one of the largest home improvement stores (I’m not in a position to drop names, but I can say it’s a player big enough to have its own Nascar racing team). And this meeting is indeed a biggie – they liked a bunch of things we showed them earlier, and want to go deeper on them… and see some new products too.

So how do we prepare… to give you a sense of how you too should prepare? A few of the basics from Bill Feroe, head of our retail team that will make this next meeting a big success:

“Ask all the hard questions now”: Re-visit your product over and over again. Look at it from all angles with a critical eye, then refine it. Also, find fresh pairs of eyes – ask people you know and trust for their input too. This preparation is essential because you want to anticipate what the retailers will think, ask and press you on… and prepare ahead to address them all.

Prepare a product sales sheet with the product’s name, features and benefits, pricing per unit (which encompasses all shipping and production costs), timeline of when the product can ship, marketing theme, and much more. This will serve to clearly and concisely lay out all the details in advance of the discussion to come. It can also be a handy “leave behind” after the meeting.

“The products pretty much speak for themselves”: Retailers will quickly know a good product when they see it. This is the case because they’ve seen a ton of products, and know which were successful in their stores. They also know their shoppers very well. So your goal isn’t to devote a lot of time to convincing them that your product’s functionality is THE next best thing. Rather, it’s to be ready for the stream of questions and expectations once they have shown interest in your product. Most notably, this includes being prepared to negotiate on a range of variables from cost and shipping methods to colors and case counts. Retailers will also sometimes ask for specific changes or upgrades, so it’s ideal to know what you can and cannot change before you get there.

Keep in mind that a good first impression can be a gateway to an ongoing relationship. So even if you’re unsuccessful in your first attempt to sell a particular retailer, keep it positive for the next time you meet… and then make sure you make that next time a reality.

September 12, 2008

Our Senior Research Analyst Jonathan Ogan stands at a cool 6’7”. We think his work stands out too – he and his research team dig in to the consumer and market dynamics of just about every invention we work on. From his vantage point – and yes, he’s biased – the most common pitfall inventors fall into early on is in their research. Often, there is none.

So what does the research guru recommend? Here are a few steps to take from the start:

Go shopping. Make sure your product doesn’t already exist. Find out what similar products are out there, and consider how your product is different from the rest. In addition to visiting lots of stores, search engines like google and yahoo can be great resource for basic information.

Get a grasp of the of your product’s industry. How big is the market? Is it growing or shrinking… and why? Is your product ahead of the curve… or already near obsolete? Familiarize yourself with Standard Industry Codes (SIC) to aid your research. Government websites, like that of the U.S. Census Bureau, are another excellent resource. Your local library may also subscribe to other services that provide more extensive industry data.

Survey people. Find out how people react to your product, including how many need it and will truly buy it. You can start with friends, acquaintances and colleagues. Larger surveys using a randomly selected, representative sample population can of course give you much more accurate information.

Have you found any other sources or techniques especially helpful to you?